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The target has been set to finalize the centralized IT-enabled system (CIETS 2.01) and EPFO 3.0 for the Employees' Provident Fund Organization (EPFO) by March 31. Officials associated with EPFO have indicated that after the development of the IT system is completed, it will be tested.

Banking-like services from EPF accounts

It is estimated that by mid-June this year, EPFO members will start getting banking-like services from their EPF accounts. Various issues were discussed on Tuesday in the 112th meeting of the Executive Committee (EC) of EPF, part of the Central Board of Trustees of EPFO.

The new system will be set up under EPFO 3.0

The meeting highlighted that a new system will be set up under EPFO 3.0, which aims to broaden social security coverage through the use of advanced technology. Members will have the option to withdraw a predetermined amount from their PF accounts as required, similar to banking practices. Additionally, in the future, EPFO members will have access to various online services, including the ability to increase their contributions.

The meeting also resolved to eliminate unnecessary verification processes, thereby making it easier for EPFO members to withdraw small amounts through the Simplified Partial Withdrawal Mechanism. The EPFO underlined the importance of ensuring prompt claim settlement, seamless pension disbursement, and improved service delivery for its members, thereby accelerating digital transformation and member-centric reforms. The EC also deliberated on the subject of pensions based on higher wages, noting that applications related to this matter are being updated as per the Supreme Court judgment from November 4, 2022.

The update process is expected to be completed by March 31. Further, the EC stressed the need for a timely transition to an Aadhaar-based Payment System (ABPS), advocating direct crediting of pension payments into Aadhaar-linked bank accounts to enhance security and efficiency.